One of Singapore’s leading real estate groups, GuocoLand achieved a record revenue of SGD 1.54 billion for FY2023, a 60% increase year-on-year. This was driven by strong operational performance from both its twin engines of Property Investment and Property Development business segments.

The facade of Martin Modern. Image: GuocoLand.

In line with the higher revenue, the group’s operating profit (profit before tax excluding any fair value gains/losses, foreign exchange gains/losses and impairments) increased 39% year-on-year to SGD 195.3 million. Profit attributable to equity holders decreased 47% year-on-year to SGD 207.1 million, mainly because FY2022 saw higher fair value gains on the group’s integrated developments in Singapore. However, the group’s investment properties continued to achieve capital appreciation despite increased market headwinds GuocoLand’s financial position remains strong, with total assets of SGD 12.01 billion and total equity attributable to ordinary equity holders of SGD 4.27 billion.

Here is a more detailed analysis of GuocoLand’s performance in each segment:

Property Investment

The Property Investment segment achieved revenue of SGD 169.6 million for FY2023, a 35% increase year-on-year, supported by strong rental income growth from the group’s investment properties in Singapore and China and the initial contribution from the group’s Guoco Midtown office tower, which obtained Temporary Occupation Permit (“TOP”) in January 2023. The group’s Guoco Tower and 20 Collyer Quay properties both achieved healthy occupancy rates of around 98%, while Guoco Changfeng City in Shanghai and the Guoco Midtown office tower achieved respective take-up rates of 95% and 85%.

Property Development

Midtown Modern. Image: GuocoLand.

The Property Development segment achieved revenue of SGD 1.3 billion for FY2023, a 62% increase year-on-year. This was mainly driven by higher progressive recognition of sales of the group’s high-end residential developments in Singapore, like Meyer Mansion, Midtown Modern and Lentor Modern, all of which are substantially sold. The segment’s operating profit grew from approximately SGD 157 million in the previous year to approximately SGD 181 million for FY2023.

Looking forward, it seems to be an exciting time ahead for GuocoLand and its twin-engine strategy as it completes the final phases of Guoco Midtown, and as it prepares to launch the upcoming development at the Lentor Gardens site in the first half of 2024.

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